CDPE, And What it Means For You

• There are options for someone in foreclosure (and before)
• Lenders are approving Short Sales
• 57% of troubled borrowers never communicate with the bank

• Short Sale and Foreclosure have the same impact on your future
• Banks are looking to take over property
• Only “sub-prime” borrowers are in touble

The Certified Distressed Property Expert (CDPE) accredation was created with the vision of helping as many homeowners as possible avoid foreclosure by either guiding them through modifiying their mortgage, rx reinstatement, sales forebearance, sale selling their home via Short Sale, renting the property, etc…

Chances are, if you have heard of Short Sales, you have likely heard partial, or false information. Just this week a CNN writer/annalyist delivered such false information to America at large on live television. The Washington Post has been guilty of the same information. The common mistake they made is stating that a Short Sale has exactly the same affect as a Forclosure on an individuals credit, and future. This is heartbreakingly erronious information, and could not be further from the truth. Here is some reality:

• Inelligible for Fannie Mae loan for 5 years
(SHORT SALE: 2 years)
• Have to acknowledge on loan application for 7 years
(SHORT SALE: never have to acknowledge on loan app.)
• 250-300 point hit on your credit score, lasting at least 3 years
(SHORT SALE: as little as 50 points, for as little as 12 months)
• Public record for 10 years via credit history
(SHORT SALE: not reported on a credit history)
Security clearance will almost always be denied/revolked
(SHORT SALE: does not challenge most clearances)
• In Virginia Bank can (and will) persue a “deficiency judgement” against the borrower to recoup their losses
(SHORT SALE: most times can negotiate to have the deficiency foregiven, and the deed written as satisfied)
• Employers can, and do, use foreclosure as grounds for termination/denying application
(SHORT SALE: not reported on credit history)

I decided to go through the CDPE training because I believe that helping to protect the financial futures of as many families as possible is the most productive thing I can do with my license during this tumultuous time. There is far more information that I can provide to an individual or family who is in, or is coming into, trouble on the mortgage. The best part of these processes is that, if successful, there is not cost to the homeowner.

Goal number one is to keep a family in their home. If that is not possible and Short Sale is the best answer, the bank then covers ALL of the fees involved in the transaction, including commissions. Many owners who are in trouble are at a loss for what to do because they do not have the ability to cover their mortgage, let alone pay Realtor commissions, or write a check at settlement to cover the remainder of the loan.

If you, or somone you know is in, or comming into, trouble on their mortgage it is important to know that there is hope. That hope is actually much brighter than many Real Estate Professionals even realize. Banks are not in the business of owning homes, it is not how their businesses are setup to opperate. They will take over property if they must, but they are extatic to work with homeowners and agents who can provide them the information they require, in the format they require it to be in. This is the crux of my training, and is the key to success. Banks have staffs that are overwhelmed and overworked, so the key is providing clean documentation, and dilligent communication.

Please, please if you hear of someone in need, have them contact me. Even if we are unable to work something out, at least they will know they did everything they could.

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